My first thought for decorating anything you don't want to look at is "fabric", comes with the costume design degree I guess. ^_^ Like someone said above, sheers are great for privacy while still letting sunlight in.

But like someone else said, I've also been eyeballing window film for my work "window" (which used to be an exterior window until they built another chunk of building around it in the fifties so now I get a choice between closing the steel miniblinds or having people on the second and third floors looking down at my monitor from the walkways that look like they came outta Alcatraz so er yeah visual interference is good.) The wall's concrete (did I mention Alcatraz?) so I couldn't put drapery holders on it so window film is looking like a nice plan B...

good luck with the redecorating-your-view! I get the feeling I've got a loooot of redecorating I'm going to be doing in the next month or two myself...